June 23 (Bloomberg) -- Chief executive officers in the U.S.
turned more optimistic in the second quarter, expecting stronger
sales and additional hiring in the next six months, a survey
showed.

The Business Roundtable’s economic outlook index rose to
94.6 in the April-to-June period, the highest level since the
second quarter of 2006, the Washington-based group said today.
Readings higher than 50 are consistent with economic expansion,
and the measure increased from 88.9 in the first quarter.

Seventy-nine percent of executives said they expect sales
will grow in the next six months, up from 73 percent in the
first quarter of 2010, while 39 percent said they will add to
payrolls, an increase of 10 percentage points. Forty-three
percent plan to spend more on equipment, down from 47 percent.

“Our member CEOs plan to continue hiring and expect
improved sales,” Ivan G. Seidenberg, chairman of the Business
Roundtable and chief executive officer of New York-based Verizon
Communications Inc., said in a statement. “That said, our CEOs
are demonstrating some caution in the area of capital
expenditures.”

The survey, in which 106 CEOs responded, was taken from May
24 to June 14. Respondents estimated the economy will expand 2.7
percent this year.

Seventeen percent of the executives said they would
decrease headcount, down from 21 percent in the prior quarter,
and 43 percent said employment will be unchanged.

Labor Market

The economy lost about 8.4 million jobs during the
recession that began in December 2007, the biggest employment
slump in the post-World War II era. So far this year, companies
have added 495,000 jobs.

The auto industry is among those beginning to recover.
Toyota Motor Corp. is planning to complete a plant in Blue
Springs, Mississippi, and hire 2,000 workers to begin production
of Corollas by the end of next year, the world’s largest
automaker announced on June 17. The company had delayed the
project 18 months ago as U.S. sales collapsed.

At least 2,000 additional jobs with suppliers are likely to
result from the plant project as well, said Mississippi Governor
Haley Barbour.

The Business Roundtable is an association of CEOs of
corporations representing a combined workforce of 12 million
employees and almost $6 trillion in annual revenue.